FX.co ★ BTC gained $6,000, but the main obstacle lies ahead: what will determine the further vector of cryptocurrency development

Bitcoin indicators showed wide fluctuations in the region of $49,000-$52,000 over the weekend. The asset tried to break through a difficult psychological line and gain a foothold in a safe position. However, this did not happen, and the BTC/USD quotes sank to a local minimum of $46,000. This was followed by a surge in market activity and bitcoin indicators rose by $6,000. This was a good sign for the market, but there are still not enough reasons to be positive.

Despite the fall in price to the March low, bitcoin has made a sharp jump over the past day and rose by 8.5%. As of 10:00 UTC, the BTC/USD pair confidently maintains its position in the region of $53,400, which instills positive in the future of the asset and the entire market. At the same time, daily trading volumes are falling to $61 billion, which indicates a lack of interest in cryptocurrency in the longer term. The total capitalization of bitcoin has come close to a trillion at $998.5 billion.

Bitcoin continues to struggle with a correction that was triggered and exacerbated by negative factors. First of all, we are talking about reaching a new all-time high in BTC and the lack of further market support. Large companies fixed their profits and did not dare to bet on the continued growth of bitcoin, despite all the prerequisites for bitcoin to burst into the corridor of $70,000-$72,000. Also, the significant tightening of regulation of cryptocurrencies in certain countries where assets were very popular added to the negativity, as well as problems with hash rates in China, which affected commissions and transaction speed. All this significantly strengthened the correction and resulted in a real collapse of BTC quotes. On April 26, US President Joe Biden added negativity by announcing an increase in the capital gains tax, which can significantly limit the investment flow in cryptocurrencies.

However, the first cryptocurrency is beginning to regain its position and has overcome an important milestone of $50,000, which saved bitcoin from falling to $40,000. Taking into account the growing bearish trend in the market, the tests for the asset do not end. Technical analysis of the bitcoin exchange rate chart suggests that the cryptocurrency needs to overcome several more important milestones before breaking free from the shackles of the price correction. Now the cryptocurrency holds safe positions in the region of $53,500, and if bitcoin consolidates on these indicators, then we can expect a change in the downward trend. The current dynamics of changes in the price of the asset indicate a positive outcome, but do not forget about the corrective volatility. Bitcoin has risen by 6% in 24 hours, and this is a breakthrough and not a systematic increase to these indicators. Given the sharp growth of the cryptocurrency, we can expect the same sharp drop.

If the crypto asset fails to hold on to the designated positions, this will aggravate the correction and give a new impetus to continue the bearish trend. Bitcoin indicators will be able to gain a foothold only at the turn of $40,000-$42,000, where powerful market support is concentrated. With this scenario, the future of BTC quotes will entirely depend on the news background. However, given the depressed market sentiment and the bearish trend, the cryptocurrency will need a powerful impetus to start rapid growth. The trends of recent days show that the cryptocurrency market reacts sluggishly to positive but instantly shudders with negative announcements.

Bitcoin became hostage to many factors that exacerbated the correction and knocked over the indicators to local lows. At the same time, the news background remains negative and levels out individual victories of cryptocurrencies. This week, BTC may break the downward trend and determine the beginning of a new growth cycle for the entire market, but at the same time, the asset may sink to $30,000 and drag cryptocurrencies into a prolonged depression.